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Course: The Control of Exemption Clauses Ordinance Part 1: Fundamentals
Code: LP02-CP03
Duration: 1.0 Hour
CPD Credit: 1 CPD Point
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The use of exclusion clauses in contracts and notices are governed by statutory controls. In Hong Kong Special Administrative Region, the CECO sets the statutory provisions that "limit the extent to which civil liability for breach of contract, or for negligence or other breach of duty, can be avoided by means of contract terms and otherwise".
Like its predecessor, the Unfair Contract Terms Act ("UCTA") legislated in the United Kingdom in 1977, the ordinance sets the statutory rules that govern the scope and validity of an exclusion clause. It delineates liability between certain parties (sellers, buyers, manufacturers and consumers) and types of agreements. The ordinance also prescribes the use of the Reasonableness Test, which, although mentioned here, is the subject of a different course.
In this first of two courses on the CECO, you will learn about the ordinance's brief history and the areas of and limitations on clauses excluding liability from negligence and those arising from a consumer sale. You will also study the following:
The varieties of exemption clauses under Section 5 of the ordinance.
The definition of the most common type of party to a contract, "dealing as a consumer".
How exclusion from liability arising from contracts to parties "dealing as a consumer" and in the "other's written standards of business" is controlled by the ordinance.
Please note that since the ordinance is based on the UK's UCTA, the course will cite more than a dozen relevant precedents from the UK and Hong Kong SAR to illustrate the various statutory provisions and to test how well you understood them.
At the end of this course, you will take a multiple-choice test. Its results will determine your CPD accreditation for completing this course.
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Jeremy Leifer
Jeremy (jeremy.leifer@deacons.com.hk) is a partner at Deacons, one of Hong Kong's and Asia's leading corporate law firms providing an extensive range of legal services to local and international corporations with business interests in Asia.
Leiferšs main areas of practice are corporate finance (including corporate restructurings, listed company rescues, and takeovers) and corporate and commercial work. His experience includes: direct investment; joint venture/shareholders agreements; acquisitions and disposals (for public and private companies, cross border and domestic); corporate reorganisations;
and general corporate work and commercial agreements.
He was admitted to the Supreme Court of England and Wales in 1988 and the High Court of Hong Kong in 1990. Leiferšs educational achievements include the London School of Economics (LLB) and Solicitors Finals (England).
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